China has unveiled a 3 level approach to boost the economy into 2014 . The “mini stimulus”, announced in a government statement on July 24, 2013, is limited but could serve as a crutch to temporarily prop up growth while more long-term solutions are enacted.

Chinese Premier Li Keqiang announced the measures during a cabinet meeting highlighting three main actions:

1. Eliminate VAT and help small businesses.

The measure has temporarily scrapped all value-added and operating taxes on businesses with monthly sales of less than Rmb20,000 ($3,250). It said the tax cuts, which go into effect at the start of August, would help more than 6m enterprises which employ tens of millions of people

2. Reduce “red-tape” costs and encourage lending to exporters.

The government pledged to simplify approval procedures and reduce administrative costs for exporting companies. Among the various moves, it said it would temporarily cancel inspection fees for commodities exports and streamline customs inspections of manufactured goods.

3. Trains for cash.

The statement said it would create more financing channels to ensure that the country can fulfil its ambitious railway development plans. More private investors will be encouraged to participate and new bond products will be issued.

A shop owner outside his small store in a village on the outskirts of Beijing. China has unveiled moves to boost growth, including reducing taxes on small companies.

A shop owner outside his small store in a village on the outskirts of Beijing. China has unveiled moves to boost growth, including reducing taxes on small companies.

The new measures come days after premier Li Keqiang pledged economic growth would not sink below 7%, in a swivel from the government’s earlier narrative centred on orchestrating a controlled slowdown.

Read more from the FT here or the Telegraph here.

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